Two Biotech Startups to Raise $70m on Wall Street
Bio Blast and Galmed have both filed prospectus with the U.S. Securities and Exchange Commission.
Dalia Megiddo and Ehud Gilboa, the founders of the publicly traded drug firm Alcobra Pharma, are planning on floating shares in Bio Blast Pharma, a new biomed startup they formed, for trading on the Nasdaq.
Bio Blast, a clinical-stage biotech company that is developing treatments for rare and ultra-rare genetic diseases, filed a draft prospectus last Friday with the U.S. Securities and Exchange Commission to raise up to $35 million in an IPO. The Tel Aviv-based company, which was founded in 2012, plans to list on the Nasdaq but has yet to disclose pricing terms. Aegis Capital is the sole book runner on the deal.
Bio Blast’s drug for treating muscular dystrophy is in Phase II clinical trials. Gilboa and Megiddo each hold a 38.3% share of the company, with Yaron Daniely, the CEO of Alcobra, holding another 2%.
Alcobra now trades a market capitalization of $235 million, marking a 150% increase since its IPO last May. The company raised another $38 million recently, though it has yet to sell any of its products commercially. Its proprietary drug, MG01CI (Metadoxine extended-release) was developed to treat cognitive dysfunctions, such as ADHD and Fragile X Syndrome.
Meanwhile, Galmed Pharmaceuticals, a clinical-stage biotech developing therapies for liver diseases and gallstones, filed on Thursday with the SEC to raise up to $35 million in an initial public offering. The IPO would value Galmed at company value of $100 million before the money.
The Tel Aviv-based company, which was founded in 2000, plans to list on the Nasdaq under the symbol GLMD. Galmed Pharmaceuticals initially filed its prospectus confidentially on December 31, 2013. Maxim Group is the sole book runner on the deal. No pricing terms were disclosed. Galmed was founded by CEO Allen Baharaff.